Performance Compensation Will Be Negotiated Separately From Other Issues

The government of India late last week cleared the way for the delivery of 27 Boeing 787 airplanes to Air India. The clearance was given in conjunction with the signing of the Delay Compensation Settlement Agreement.

Boeing had originally planned to deliver the first Dreamliners to Air India in 2008, and continue until October of last year. Several lengthy delays in getting the airplane flying pushed those delivery dates to a timeframe which began in June of this year and has the last of the airline's Dreamliners flying for the carrier in March of 2016.

According to the New York Daily News, the agreement signed Friday uncouples the issues which pertain to Boeing's failure to deliver the airplane on its original schedule from side issues dealing with the Dreamliner's performance. IBN Live reports that the performance issues will be negotiated separately, and that following a vote of the Cabinet Committee of Economic Affairs in which the members approved the Civil Aviation Ministry proposal, Air India can begin taking delivery of the airliners it has ordered. There are reportedly three Dreamliners in Air India livery ready to enter service with the carrier.

FMI: http://india.gov.in/sectors/transport/ministry_civilaviation.php